Citi: Raises Alibaba's target price to HKD 137, performance during Double 11 was ideal

Citi released a report stating that Alibaba performed well during the Double 11 shopping festival, and with the increased adoption of its artificial intelligence tool Quanzhantui, it believes that the last quarter's merchandise transaction volume and customer management revenue may exceed the bank's previous conservative assumptions. It predicts that customer management revenue will grow by 5% year-on-year, compared to the previous forecast of 3.7% year-on-year growth. Citi forecasts that Alibaba's total consolidated revenue for the third quarter of the 2025 fiscal year will be 277 billion yuan, a year-on-year increase of 6.6%, with a non-GAAP net profit of 47.2 billion yuan. The bank believes that due to the rationalization of competition and the continuation of the trade-in policy, this will translate into a slight acceleration in the growth of the e-commerce industry this year, as well as a trend of stabilizing to slightly better industry profit margins. After the forecast revision, Alibaba's H-share target price was raised from HKD 132 to HKD 137, and the ADR target price was increased from USD 133 to USD 138, maintaining a "Buy" rating